Photo courtesy Rayonier A Rayonier employee watches as wood chips come off a conveyor belt into a pile at the Jesup mill. The chips, which are processed at sites around the state, are sorted according to type and use.

Tucked along the banks of the Altamaha River in Jesup, the sprawling campus that is Rayonier looks for all the world like a large paper mill. It’s even occasionally referred to as “the Jesup paper mill.”

But the global forest products company that traces its roots back more than 85 years to the Rainier Pulp and Paper Co. in Shelton, Wash., doesn’t produce a single roll of paper.

Instead, Rayonier — its name a nod both to the manmade fiber it helped develop and its beginnings in the shadow of Mount Rainier — is a leading producer of performance fibers used in everything from pancake syrup, muffin mix and time-release capsules to flat-screen TVs, Fram oil filters and Michelin high-speed tires.

Now headquartered in Jacksonville, Fla., the publicly traded company (NYSE: RYN) with $1.5 billion in annual revenues and a market capitalization of $5.5 billion, boasts more than 1,800 employees on three continents.

Some 1,200 of those employees are in Georgia, by far the company’s largest footprint, with the performance fibers mill and marketing and research center in Jesup; lumber mills in Baxley, Swainsboro and Eatonton; wood chip mills in Offerman, Eastman, Collins and Barnesville; a seedling nursery in Glennville, more than 700,000 acres of working forests and an annual economic impact of more than $400 million.

“We essentially have three core businesses that comprise the company — forest resources, real estate and performance fibers,” said Paul Boynton, Rayonier chairman, president and CEO.

The company owns, leases or manages 2.7 million acres of timber and land in the United States and New Zealand, including 200,000 acres with residential and commercial development potential along the Interstate 95 corridor from Savannah to Daytona Beach.

“We’re not a developer, but we assess each of our holdings according to location, demographic and population growth data,” Boynton said. “Timberlands determined to be more valuable are transitioned to our real estate subsidiary to be sold or entitled for residential, commercial, industrial or conservation uses.”

While the Florida mill produces only cellulose specialty materials, the Jesup mill houses three fiber lines, two of which produce the high-value cellulose fibers, while the other produces absorbent fluff pulp for use in disposable diapers and feminine hygiene products.

The mill is currently undergoing an expansion that will convert the third line to cellulose specialties, leaving the production of fluff pulp to other manufacturers.

“While Rayonier developed our fluff pulp process in the late 1970s, it’s only a very small part of our business now,” said Jack Perrett, general manager of the Jesup mill.

“Meanwhile, market demand for our cellulose specialty fibers is growing to the point where we can’t meet the need. It only makes sense to devote all of our energy and production to that end.”

Once the $300 million, two-year expansion — currently the second-largest major project under way in the state — is complete next summer, it will add another 190,000 metric tons of cellulose special product to the Jesup mill’s capacity.

Making Jesup the operation’s flagship was a natural fit, Boynton said.

“Once we decided to grow our cellulose specialties line, we looked everywhere before deciding to stay home,” he said. “Jesup is the confluence of all the things we needed — great natural resources, water, rail, port access and human capital.”

Indeed, with approximately 60 percent of its products shipping to destinations outside North America, Rayonier is one of Georgia Port’s top exporters by container volume.

“We ship to more than 40 countries in Europe, Asia, South America,” said Jeff Rosbach, director of strategic projects for the company.

Engineers and scientists

Rayonier’s high-purity specialty fibers are in demand for their unique optical, thickening and sensory properties that conform to customers’ precise standards. It’s not uncommon for testing and trials to take up to two years to fine-tune a specific process, said Erin Byers, director of sales and marketing.

At the company’s sales, marketing and research center in Jesup, engineers and scientists focus on developing fibers to meet specific customer needs, as well as providing technical and research support to customers working with Rayonier fibers.

“When we do a research project, we start with customer input and keep them in the loop along the way,” he said.

The center, which is in a separate building, also houses a “mini mill” that allows scientists to replicate and evaluate mill processes without disrupting the mill.

“Technology changes constantly, so we are constantly analyzing and upgrading our equipment, a lot of which is proprietary — designed by us and built for us,” Byers said.

While parts of the process are closely guarded secrets, the basic steps of converting wood chips to high-purity cellulose involve putting the chips into a digester, then washing, screening and bleaching. Finally, the product is formed into sheets in a pulp drying machine, rolled, cut and shipped.

Among the performance fibers Rayonier produces are:

• Acetates used in such products as LCD screens for televisions and computers, filters, including cigarette filters, and impact-resistant plastics. Think the handle of your screwdriver.

• High-purity ethers used as ingredients in food and pharmaceuticals.

• High-strength viscose used in a variety of products, from food casings to high-performance tires.

One major advantage of the Jesup facility is that it is a self-contained plant, Rosbach said.

“In addition to manufacturing, we have sales, marketing, research and engineering all right here,” he said.

“We have two major railroads on site for transporting chips from chipping facilities, as well as truck transportation for shorter hauls. We have the ports for exporting our product.”

“Rayonier is a great customer and valued partner,” said Curtis Foltz, executive director of Georgia Ports Authority.

“They are among the top exporters of containerized cargo out of our Garden City Terminal and also make use of the Brunswick Ports for non-containerized products.

“We’re happy to be here to meet their needs,” he added.“Ours is a win-win relationship.”

Community impact

As Jesup is good for Rayonier, the reverse is also true.

The mill alone supports 850 area jobs, with an hourly wage that is the highest in the five-county area.

“Rayonier is truly the economic engine of our community and beyond to the region,” said John Riddle, president and CEO of the Wayne County Chamber of Commerce and Industrial Development Authority.

“Their impact on our community is multi-faceted, with Rayonier executives and employees taking on leadership roles throughout the area. The intellectual capital they bring to Jesup is invaluable.

“They are out in the community, leading lunch-and-learns for small businesses, supporting our schools, coaching Little League, serving on community boards,” Riddle said.

With a company match, Rayonier employees recently raised more than $200,000 for the United Way. The Rayonier Foundation supported area schools and nonprofits, awarding more than 35 grants and funded projects this year alone. Scholarships support both employees and the community at large.

The company is also committed to stewardship and conservation, Boynton said.

“Working with various conservation groups, Rayonier has helped preserve more than 150,000 acres throughout the country, protecting salt marshes, forests and wetlands, both as safe havens for endangered species and as recreational destinations.

“We’re managed for the long term, and that includes a commitment to the environment and the communities where we operate,” he said. “We are constantly assessing our business operations to see where we can implement clean, efficient and renewable energy.”

The Jesup Mill, for example, generates 95 percent of its own energy needs from biomass.

“We are committed to improving the quality of life wherever we are.”

That, too, is a two-way street, Riddle said.

“As we work together to make Jesup a great place to live and work, it helps Rayonier recruit the best and brightest, and it helps us recruit the physicians, teachers, lawyers and accountants that a thriving community needs,” he said.

“Rayonier could have gone anywhere to build this $300 million expansion, but they chose Wayne County.

“I don’t know where we would be without them.”

RAYONIER AT A GLANCE

Rayonier Inc. (NYSE: RYN) is a leading international forest products company with three core businesses – forest resources, real estate and performance fibers. Structured as a real estate investment trust, the company owns, leases or manages 2.7 million acres of timber and land in the U.S. and New Zealand.

Its performance fibers business is one of the world’s leading producers of high-value specialty cellulose fibers. The Jesup mill currently produces about 330,000 metric tons of cellulose specialties used in everything from filters and LCD screens to pharmaceuticals and food.

A $300 million expansion underway will expand the mill’s capacity to produce performance fibers by 190,000 metric tons when it is completed in mid 2013.